“Today’s vote to leave the EU will mean more uncertainty and a tough period for defined benefit (DB) and defined contribution (DC) schemes. Employers with DB schemes will need to work closely with trustee boards to assess the current strategy to deliver a fully funded scheme. Trustee investment committees will need to meet frequently over the coming months to manage this period as robustly as possible.
“For DC schemes it is the members who are directly impacted by this result. Employers should carefully consider what to communicate to members, particularly those looking to retire in the next few months.”
Jonathon Land, head of PwC’s pensions credit advisory service, commented: "Ultimately what this means for defined benefit pensions schemes in the UK will depend on the relative impact of any economic changes on both the employer and the pension scheme. For employers there will be winners and losers and it will be important for trustees to monitor the employer covenant closely and determine quickly which group the company that supports their pension scheme is in.
"We will shortly be releasing our Pension Support Index which will consider how the overall support of the FTSE 350 is impacted by Brexit."
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